[SMM Analysis] Trading Sentiment Cooled Somewhat, Nickel Salt Prices Declined Slightly

Transaction Sentiment Cooled, Nickel Salt Prices Edged Down Slightly

As of this Friday, the SMM battery-grade nickel sulphate average price edged down.

Demand side, some enterprises saw a recovery in production schedules this month and still had certain raw material demand, but due to the pullback in nickel prices, downstream buyers had not yet initiated large-scale procurement after the holiday. Supply side, as nickel prices, MHP payables, and auxiliary material prices remained at highs this week, some producers faced high spot costs, and nickel salt quotations stayed high. Looking ahead, nickel salt cost support remains relatively strong in the near term, and attention should be paid to the cost support from nickel prices and intermediate products going forward.

Inventory side, upstream nickel salt smelter inventory index rose from 5.6 days to 8.2 days this week, downstream precursor plant inventory index declined from 10 days to 9.6 days, and integrated enterprise inventory index stayed at 6.8 days. In terms of buying and selling strength, upstream nickel salt smelter Willingness to Sell Sentiment Factor stayed at 2 this week, downstream precursor plant procurement sentiment factor declined from 2.6 to 2.5, and integrated enterprise sentiment factor declined from 2.6 to 2.4. (Historical data can be accessed via the database.)

Nickel Prices in the Doldrums, Nickel Salt Costs Pulled Back

Cost side, MHP raw material market circulation remained tight. Affected by both production cuts of intermediate products caused by sulphur shortages and the rebound in downstream demand, MHP transaction coefficients fluctuated at highs this week. Regarding nickel prices, after Trump's visit to China this week, non-ferrous metals overall experienced a pullback, and nickel prices were under pressure and in the doldrums. Overall for the week, nickel prices continued to pull back, MHP payables held steady, and nickel salt production spot costs pulled back WoW.